Update: Lloyds TSB shareholders approve HBOS takeover

Lloyds TSB (LON:LLOY) shareholders today at an extraordinary general meeting in Glasgow regarding the controversial merger with HBOS (LON:HBOS) have given their approval. The move comes a day after Alistair Darling the Chancellor warned that if the deal failed it could end up extremely costly for HBOS.

It has been widely expected that Lloyds TSB shareholders would approve the deal, although the merger has caused lots of controversy with a lot of hostility towards the deal.

If the deal does go ahead HBOS shareholders will receive 0.605 shares for a single Lloyds TSB share, however HBOS shareholders have yet to vote, they will be doing so on December 12.

Ahead of today’s meeting the ABI which represents the interest of the insurer gave the deal an ‘amber’ flag which means they had some reservations but not enough to want to stop the deal.

Only last week the chairman of HBOS Dennis Stevenson warned that HBOS would find it hard to survive if it was not nationalized.

Source: Citywire

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